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LivestreamMenuFigma is poised to bolster its struggling business as it leverages artificial intelligence in its design software, according to Citi Research. The bank initiated coverage of the design name with a buy rating. It put a $36 price target on shares, suggesting 100% upside from Tuesday’s close. “As AI capabilities have expanded rapidly, the design software market itself is undergoing significant changes,” analyst Tyler Radke said Wednesday in a note to clients. “As more design work begins across code and AI-drive environments, we see Figma becoming the system of record that brings those workflows together.” Shares of Figma have fallen roughly 52% this year, largely due to investor concerns that AI may disrupt the traditional design software industry. FIG YTD mountain Figma stock has plunged 52% in 2026. However, Figma is unlikely to face significant disruptions linked to the emerging technology because its platform includes several generative AI integrations, according to Citi. In fact, the AI boom could vastly expand the firm’s market potential, per the bank. Citi projects Figma’s total addressable market could increase to $50 billion by 2029, or roughly double its estimated value as of last year. “AI could drive this metric upward as it accelerates the growth of the long tail of customers and new app development, which may introduce knowledge workers not previously targeted,” Radke wrote. He added that Figma could also get a boost to its bottom line from subscription upgrades, particularly as its clients move to more expensive plans offering additional licenses or premium add-ons. Citi’s call goes against consensus on the Street. Of the 13 analysts covering Figma, just three have a buy or strong buy on the stock, LSEG data shows.Read More
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